What’s the Right Profit Metric? Cost Per Pax.
19-May-2016 Traditionally, the airline industry has concentrated on a cost-per-seat strategy because it was the only way to extract margin. As a result of the lower cost-per-seat pursuit, many airlines were driven toward purchasing larger single-aisle aircraft.
But one size does not fit all.
On many routes, seats were flying for free. Empty seats. And if not free, the seats were on sale. And as everyone knows, sales procure low yields. Consequently, a large part of the secondary market was dropped, or even ignored.
On the other hand, medium-haul markets are reaching a certain level of saturation.
So where is the next level of growth? What's the best way to stimulate traffic and increase the number of passengers travelling through hubs? Secondary and tertiary markets are the key. In other words, it's time to go deeper in the regions.
What really matters when looking for high yields at low risk is simple: the cost per passenger on board.
Source: http://news.commercialaircraft.bombardier.com/whats-the-right-profit-metric-cost-per-pax/
Right-Sized for Opening New Markets
Free from design constraints, the C Series 5-abreast platform was developed specifically for the 100 -150 passenger market. It is not a stretch, nor a shrink of a legacy program. It's the right aircraft at the right time.
A Low Risk Solution
With a 25 to 35% lower cost per passenger on board, the C Series aircraft are the ideal complements to the larger A320/A321 and 737-800/737-900. The C Series family provides the freedom to think differently about network planning. Which means, airlines have a new way to grow and focus on the next opportunity for expansion.
Increase Your Yields
Entering into service in July of this year, the C Series is the right tool to help you be the first to grow these new markets profitably. Now, you can return to these once deserted markets with the right sized aircraft and start increasing your yields.
Be the first to serve those markets where there is no competition, but plenty of opportunity.